X Global Employment Trends for Youth 2020: Americas

Global Employment Trends for Youth 2020: Americas

In 2020 the NEET rate in the Americas is projected to be On the positive side, the gender disparity has fallen 19.2 per cent; a little below the Global rate (table 1). There somewhat. Between 2012 and 2020, the female NEET rate has been only marginal improvement since 2012 with a in the region fell by one percentage point. Whilst the male reduction of 0.5 of a percentage point over these eight rate remained practically unaltered, increasing very slightly years, although this contrasts positively with the overall from 14.0 to 14.1 per cent. Thus, the entire reduction in the increase in the NEET rate witnessed in the world as a whole overall NEET rate between 2012 and 2020 can be attributed over the same time-span. In common with much of the rest to the fall in the female NEET rate. of the world, there is considerable gender disparity in the NEET rate; at 24.5 per cent the female NEET rate is more than ten percentage points higher than the male rate.

Table 1: NEET, unemployment and labour under-utilization (LU3) rates for young people, Americas, 2012-2021.

2012 2018 2019 2020 2021 World Total 21.6 21.9 22.2 22.3 22.5 Total 19.7 19.0 19.1 19.2 19.4 NEET rate Americas Male 14.0 13.8 14.0 14.1 14.3 Female 25.5 24.3 24.3 24.5 24.6 World Total 13.4 13.5 13.6 13.7 13.8 Youth Total 14.4 15.0 15.0 15.1 15.3 unemployment rate Americas Male 13.1 13.7 13.7 13.7 13.9 Female 16.1 16.7 16.7 16.9 17.2 World Total 19.6 20.1 20.2 20.4 20.5 Total 20.9 21.9 21.9 22.1 22.3 LU3 Americas Male 18.2 19.5 19.5 19.5 19.8 Female 24.4 25.0 25.1 25.3 25.5

Youth unemployment rates have consistently been slightly region which has remained little altered over the period. higher in the Americas than the global average and have In 2020 the gender difference amounted to just over actually worsened over time. There is also considerable three percentage points. The youth unemployment rate is gender disparity in youth unemployment rates in the expected to continue to rise slightly in 2021. X Global Employment Trends for Youth 2020: Americas

Also, the ILO’s labour under-utilization index LU31 is a and men – are expected to increase in the Americas albeit little above the global average. Worryingly, since this slightly, conforming to the global picture. is arguably a more accurate indicator of involuntary worklessness than either the unemployment or the NEET Turning to work itself (table 2), in common with global rate, the LU3 index has increased significantly from 20.9 trends, the employment population ratio in the Americas per cent in 2012 to 22.1 per cent in 2020 and is expected to has been falling gradually over time, although at continue to do so into 2021. 42.3 per cent in 2020 it remains relatively high compared to the global average. Since NEET rates are actually a little Here too there is a significant gender disparity, although below the global average, this necessarily implies that the divergence has lessened slightly over the period, in educational participation – although rising gradually – 2020 it remains substantial at almost six percentage points. remains significantly below the global average.1 There is a substantial gender gap in employment rates although this Thus, unfortunately between 2020 and 2021, all three has fallen moderately from 14.4 percentage points in 2012 indices related to worklessness – for both young women to 12.5 percentage points in 2020.

Table 2: Employment and working poverty rates for young people, Americas, 2012-2021.

2012 2018 2019 2020 2021 World Total 38.7 35.8 35.6 35.4 35.1

Employment-to-population Total 44.1 42.7 42.5 42.3 42.0 ratio Americas Male 51.2 48.9 48.7 48.4 48.1 Female 36.8 36.3 36.2 35.9 35.7

Extreme working poverty rate World Total 16.3 13.1 12.8 12.6 12.4 (<1.90 USD per day PPP) Americas Total 2.2 1.7 1.6 1.5 1.4

The prevalence of Informal youth employment – at 46.2 per percentage points below the global average in 2020 and it cent of young workers is significant, but still well below continues to decline. Indeed, one positive sign emerging the global average of 77.1 per cent.2 Similarly, extreme is that extreme working poverty is expected to continue is working poverty is fairly low in the region – more than ten gradual downward trajectory into 2021.1 2

1 Since by definition, amongst young people (aged 15-24), the NEET rate + the employment-population ratio = 1 – the educational participation rate. Thus, in the Americas, the implied educational participation rate of young people is 38.5 per cent whilst the global average is 42.4 per cent.

2 Based on data reported in ILO (2018). Data is for 2016 or nearest year.